Direct Loans
The Direct Loan Program makes long-term loans available to students at all levels of study, and to parents on behalf of dependent students. The federal government subsidizes interest during defined periods for undergraduate students who show need under the federal need analysis methodology, but only for a limited amount of time based on the length of the student’s program. Various repayment plans are available, as well as deferments, cancellations, and discharges.
Related topics in this Index: Loan Counseling; Cohort default rate
Synonyms:
Stafford Loans
-
Statutory Authority
-
Regulations
-
ED References
-
NASFAA Publications and Articles
-
NASFAA AskRegs Knowledgebase
Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.
-
NASFAA Compliance Engine
The Compliance Engine is comprised of two modules: the Self-Evaluation Checklists which allows administrators to evaluate their programs in a centralized, shared online space, and the P&P Builder, a tool designed to assist institutions in the creation and maintenance of a policies and procedures manual. Along with an online space to update and maintain policies and procedures, the P&P Builder includes legislation and regulation associated with compliance with Title IV requirements.
-
NASFAA Quick Reference Guides
-
NASFAA U Authorized Events
NASFAA U Authorized Events are a comprehensive set of instructional materials for teaching financial aid concepts to groups of individuals. Materials include a study guide, instructor guide and accompanying presentation slides.
-
NASFAA U Online Courses
NASFAA U Online Courses are collaborative learning sessions bring minds and ideas together despite distances. Online courses help you become more proficient, more knowledgeable, and more valuable to your organization, to interact with your colleagues through required discussions, and offer you the option to work towards earning a professional credential from NASFAA.
-
NASFAA U Self-Study Guides
NASFAA U Self-Study Guides are written for the independent learner. Each Self-Study Guide includes multiple lessons with a variety of exercises to reinforce each lesson. Individuals do independent study and take quizzes in a traditional paper format (not online). Then you can qualify to take a test and earn a professional credential.
-
Subtopics
-
Acceleration
-
Adverse credit
-
Aggregate loan limits
-
Graduate/Professional
-
Direct Subsidized Loans
-
Limits
-
Loss of subsidized eligibility on/after 7/1/12
-
Prior to 7/1/12
-
Direct Unsubsidized Loans
-
PLUS
-
NSLDS information
-
General
-
Calculating unsubsidized aggregate loan amounts
-
PLUS
-
Summary chart
-
Treatment of consolidation loans
-
Treatment of converted TEACH Grants
-
Undergraduate
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Dependent undergraduate student
-
Dependent student whose parent cannot borrow PLUS
-
Independent undergraduate student
-
Annual loan limits
-
Grade level progression
-
General information
-
Grade level changes during academic year
-
New annual amount for same grade level
-
Remedial work
-
Transfer student’s grade level classification
-
Graduate/Professional students
-
Direct Subsidized Loans
-
Limits
-
Loss of subsidized eligibility on/after 7/1/12
-
Prior to 7/1/12
-
Direct Unsubsidized Loans
-
PLUS
-
Health professions students
-
Loan limit period (period to which loan limit applies)
-
Loan limit progression [Scheduled Academic Year (SAY) and Borrower Based Academic Year (BBAY)]
-
Maximum loan amount (need limitation)
-
PLUS
-
Preparatory coursework
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Students returning for same or lower credential
-
Summary chart
-
Teacher certification (postbaccalaureate)
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Transfer student
-
Treatment of converted TEACH Grants
-
Undergraduate students
-
First year
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Dependent student
-
Dependent student whose parent cannot borrow PLUS
-
Independent undergraduate student
-
Second year
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Dependent student
-
Dependent student whose parent cannot borrow PLUS
-
Independent undergraduate student
-
Third year through end of undergraduate program (including upper division programs, i.e., programs requiring an associate or baccalaureate for admission)
-
Direct Subsidized Loans
-
Direct Unsubsidized Loans
-
Dependent student
-
Dependent student whose parent cannot borrow PLUS
-
Independent undergraduate student
-
Application of payments
-
Application of prepayments
-
Application of refunds and returns of Title IV funds from schools
-
Order of application for scheduled payments
-
Order of application under income-based repayment
-
Order of application under PAYE repayment
-
Order of application under REPAYE repayment
-
Prepayment without penalty
-
Attendance at multiple schools during same period
-
Authority to pay refund or return of funds to ED on behalf of borrower
-
Borrower defenses against collection of a loan and school liability
-
Borrower eligibility
-
Parent borrower of PLUS loans
-
Adverse credit history
-
General rules
-
Definition of endorser
-
Borrowing on behalf of an eligible dependent undergraduate student
-
Citizenship/residency
-
Default on Title IV loans
-
General rules
-
Definition of satisfactory repayment arrangement
-
Disability cancellation of previous loan
-
Fraudulently obtained Title IV funds
-
Overpayment of Title IV funds
-
Parent (definition and qualification to borrow)
-
Social Security number
-
Statement of Educational Purpose
-
Student borrower
-
Code of conduct
-
Collection charges
-
Consolidation
-
General rules
-
Interest rate
-
Loans eligible for consolidation
-
Defaulted loans
-
Acceleration
-
Collection actions
-
Eligibility for deferment
-
Failure to repay in response to immediate demand letter
-
Satisfactory repayment arrangements
-
Deferment
-
Additional deferments for borrowers with loans made prior to 7/1/93
-
Borrower’s responsibility to request and document deferment
-
Cancer Treatment
-
Economic hardship
-
Graduate fellowship
-
General rules
-
Medical internship or residency
-
In-school deferment
-
General rules
-
Medical internship or residency
-
Methods for identifying or conveying deferment status
-
Military service
-
General rules
-
Borrower’s representative
-
National Guard
-
Payment of interest during deferment of Direct Unsubsidized or PLUS loans
-
Post active duty deferment
-
Rehabilitation training
-
Unemployment
-
Denial or reduction of Direct Loans
-
Dependent student whose parents cannot borrow PLUS: qualifying circumstances
-
Determination of Direct Unsubsidized Loan eligibility for Grad PLUS applicants and notification of eligibility
-
Disbursement
-
Discharge, cancellation, forgiveness
-
Bankruptcy
-
Closed schools
-
Death
-
Disposition of payments received after discharge approval
-
False certification and unauthorized disbursement
-
Public Service Loan Forgiveness
-
September 11 survivors discharge
-
Teacher loan forgiveness
-
Total and permanent disability (TPD)
-
Unpaid refunds
-
Enrollment reporting
-
Entrance counseling
-
Exit counseling
-
FAFSA requirement
-
Subsidized and unsubsidized Direct Loans
-
Grad PLUS
-
Parent PLUS
-
Failure to begin attendance
-
Forbearance
-
General conditions and process
-
Administrative
-
Length of forbearance period
-
Grace period
-
Active duty military exclusion
-
Correspondence programs
-
Definition
-
Grad PLUS
-
Parent PLUS
-
Subsidized loan
-
Ineligible borrower (due to borrower or student action)
-
General rules
-
Immediate demand letter
-
In-school status of student
-
Parent PLUS
-
Subsidized loan
-
Unsubsidized loan
-
Interest capitalization
-
Interest rate
-
As calculated
-
Fixed interest rate
-
On or after 7/1/2013 (Direct Consolidation Loans)
-
On or after 7/1/1999 and before 7/1/2013 (Direct Consolidation Loans)
-
On or after 7/1/2020 and before 7/1/2021 (Direct Loans)
-
On or after 7/1/2013 and before 7/1/2020 (Direct Loans)
-
On or after 7/1/2006 and before 7/1/2013 (Direct Loans)
-
Formulas used to calculate
-
7/1/2013 and later, Undergraduate Direct Subsidized and Unsubsidized Loans
-
7/1/2013 and later, Grad/professional Direct Unsubsidized Loans
-
7/1/2006 – 6/30/2013, Undergraduate Direct Subsidized Loans
-
7/1/2006 – 6/30/2013, Direct Unsubsidized Loans
-
7/1/2006 – 6/30/2012, Grad/professional Direct Subsidized Loans
-
7/1/1998 – 6/30/2006, Direct Subsidized and Direct Unsubsidized Loans
-
Consolidation loans
-
PLUS Loans
-
Servicemembers Civil Relief Act (SCRA)
-
Variable Interest Rate Calculations
-
7/1/20 to 6/30/21
-
Prior to 7/1/10
-
Late charge
-
Loan fees
-
Loan period
-
COD Reporting
-
Maximum loan period
-
Minimum loan period
-
New program
-
Transfer student
-
Minimum Direct Subsidized Loan amount
-
National emergency
-
Origination rules, general
-
685.301
-
COD origination fee guidance
-
Refusal to originate
-
Program participation choices for school
-
Program year closeout
-
Promissory note
-
Annual Student Loan Acknowledgement
-
Completion prior to disbursement
-
Handling
-
Master Promissory Note (Revised)
-
Proration of loans for remaining periods and programs of less than an academic year in length
-
Prorated limits
-
Recalculation for change in credits
-
Reconciliation
-
Rehabilitation of defaulted loans
-
Repayment incentive
-
Repayment period, beginning of
-
Consolidation loan
-
Exclusion of deferments and forbearances from repayment period
-
First payment due date
-
PLUS loan
-
Subsidized loan
-
Unsubsidized loan
-
Repayment plans
-
Alternative repayment plan
-
Applicability of selected plan to all Direct Loans of borrower
-
Changing repayment plans
-
Choice of plan
-
Defaulted loans
-
Extended repayment plan
-
Graduated repayment plan
-
Income-based repayment plan
-
General rules
-
Eligibility documentation, verification, and notifications
-
Interest forgiveness
-
Loan forgiveness after designated years of repayment
-
Monthly payment limit
-
Partial financial hardship
-
Income-contingent repayment plan
-
General rules
-
Eligibility documentation
-
Interest capitalization limitation
-
Loan forgiveness after designated years of repayment
-
Monthly repayment
-
Repayment amount calculation
-
Repayment period
-
Minimum payment of accrued interest
-
Pay as you earn (PAYE) repayment plan
-
General rules
-
Eligibility documentation, verification, and notifications
-
Interest forgiveness
-
Loan forgiveness after designated years of repayment
-
Monthly payment limit
-
Partial financial hardship
-
Repayment period
-
Plans available to Direct Subsidized or Unsubsidized Loan borrowers who enter repayment before 7/1/2006
-
Plans available to Direct PLUS borrowers who enter repayment before 7/1/2006
-
Plans available to Direct Subsidized, Unsubsidized, or Grad PLUS borrowers who enter repayment on or after 7/1/2006
-
Plans available to parent PLUS borrowers who enter repayment on or after 7/1/2006
-
Plans available to Direct Consolidation Loan borrowers who enter repayment on or after 7/1/2006
-
Revised Pay As You Earn (REPAYE) repayment plan
-
General rules
-
Eligibility documentation, verification, and notifications
-
Interest forgiveness
-
Loan forgiveness after designated years of repayment
-
Monthly payment limit
-
Repayment period
-
Spousal information for income-based, income-contingent, and pay as you earn plans
-
Standard repayment plan
-
Replacement of EFC with loan proceeds
-
Replacement of subsidized loan with unsubsidized loan
-
Subsidy
-
Counseling information
-
Limitation on eligibility for subsidy (150% limit)
-
Periods subsidized
-
Reporting
-
Unenforceable loans due to school action
-
Withdrawal date